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On Wednesday, we reported the confirmed acquisition of casual game company PopCap by EA, the gaming giant.
Now, we’ve learned that Zynga may have made a bid to acquire PopCap, as well, and quite a competitive bid, at that.
As EA revealed yesterday, the deal to buy PopCap had a rather complex structure that left PopCap taking home $650 million in cash and up to $550 million in stock and earn-outs. Zynga, on the other hand, reportedly offered PopCap $1 billion upfront in cash.
Now Forbes reports that Zynga, a huge name in social gaming, was planning to take out a line of credit from investor Goldman Sachs to meet the $1 billion offer, according to a source close to the matter.
The startup had only gathered $1.5 billion in cumulative revenue since 2007, according to its recent IPO filing. And since its founding, the company has taken $1 billion in funding, about half of which came in a mammoth round last February and left Zynga valued at around $10 billion.
Zynga has actually been on something of an acquisition spree, snapping up smaller gaming studios at a rate of one per month for the past year or so. However, PopCap was definitely a lofty target, even for one of the biggest successes in casual gaming. We’ll see where this defeat leads Zynga next.
More About: acquisition, popcap, report, Zynga
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